Correlation Between Fiera Capital and Savaria
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and Savaria at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fiera Capital and Savaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Savaria, you can compare the effects of market volatilities on Fiera Capital and Savaria and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fiera Capital with a short position of Savaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Savaria.
Diversification Opportunities for Fiera Capital and Savaria
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fiera and Savaria is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Savaria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savaria and Fiera Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fiera Capital are associated (or correlated) with Savaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savaria has no effect on the direction of Fiera Capital i.e., Fiera Capital and Savaria go up and down completely randomly.
Pair Corralation between Fiera Capital and Savaria
Assuming the 90 days trading horizon Fiera Capital is expected to generate 1.58 times more return on investment than Savaria. However, Fiera Capital is 1.58 times more volatile than Savaria. It trades about 0.14 of its potential returns per unit of risk. Savaria is currently generating about 0.09 per unit of risk. If you would invest 664.00 in Fiera Capital on August 29, 2024 and sell it today you would earn a total of 314.00 from holding Fiera Capital or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiera Capital vs. Savaria
Performance |
| Timeline |
| Fiera Capital |
| Savaria |
Fiera Capital and Savaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and Savaria
The main advantage of trading using opposite Fiera Capital and Savaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, Savaria can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Savaria will offset losses from the drop in Savaria's long position.| Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
| Savaria vs. TFI International | Savaria vs. goeasy | Savaria vs. Enghouse Systems | Savaria vs. Exchange Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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